Insolvent Licensors - New Legislation May Protect Licensees

This article was originally published in Blakes Bulletin on Intellectual Property - February 2006

Article by Linc Rogers, ©2006 Blake, Cassels & Graydon LLP

On November 25th, 2005, Bill C-55, which proposes sweeping changes to Canada’s principal insolvency statutes, received Royal Assent – the final step in the Canadian legislative process before a bill is proclaimed in force. Prior to dissolving Parliament and calling a Federal election for January 23, 2006, the Liberal Government gave assurances to the Senate Committee on Banking, Trade and Commerce, which is charged with oversight and review of Bill C-55, that it would not proclaim the Bill in force prior to June 30, 2006 (it is not known whether the new Conservative Government will honour this commitment). If enacted in its current form, the amendments will have a material impact on the rights and obligations of various participants in formal insolvency proceedings in Canada. One of the most important provisions seeks to